Get All Access for $5/mo

FHRAI Approaches Sebi To Block OYO From IPO Launch The move comes at a time when the Competition Commission of India (CCI) imposed penalty on the hospitality and travel-tech firm for unfair business practices

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Oyo Twitter handle

The Federation of Hotel and Restaurant Associations of India (FHRAI), on Tuesday, reportedly said that it has written to market regulator Securities and Exchange Board of India (SEBI) to stop OYO from launching its initial public offering (IPO). The move comes at a time when the Competition Commission of India (CCI) imposed a penalty on the hospitality and travel-tech firm for unfair business practices.

"Now that OYO has been found guilty of indulging in anti-competitive and unfair business practices thereby affecting the business of small hotels and suppressing competition, it is imperative that its IPO should not be allowed in the interest of the hospitality sector, consumers and potential investors," said FHRAI in a statement.

The association also said that it has requested Sebi to stop or bar OYO's IPO efforts with immediate effect.

As per reports, in October, CCI slapped penalties of more than INR 392 crore on online travel firms MakeMyTrip, Goibibo, and hospitality services provider OYO for indulging in unfair business practices.

Commenting on the matter, as per reports, OYO said that FHRAI is misrepresenting the CCI order and the letter to Sebi is to distract attention from the executive committee meeting of FHRAI being held as null and void by the NCLT, which has also ordered a court-monitored AGM of the hospitality industry body.

"FHRAI is again resorting to making incorrect sensational statements to distract attention from the fact that NCLT has held the executive committee meeting of FHRAI as null and void, has ordered fresh elections and has ordered a court-monitored AGM in the presence of a nominee of the court," said an OYO spokesperson, reported by ET.
In October 2021, according to reports, OYO filed preliminary papers with Sebi to raise INR 8,430 crore through an initial share sale. The company said that it has not launched an IPO, citing the volatile nature of the market.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Leadership

Visionaries or Vague Promises? Why Companies Fail Without Leaders Who See Beyond the Bottom Line

Visionary leaders turn bold ideas into lasting impact by building resilience, clarity and future-ready teams.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Science & Technology

Why Businesses Are Relying on Automation to Survive the Labor Crisis

Robots are revolutionizing industries by addressing labor shortages and enhancing efficiency, while businesses navigate challenges like workforce adaptation and high implementation costs.

News and Trends

Fast Fire Watch Guards: Protecting Your Business From Today's Fire Hazards

As a watch guard company, Fast Fire Watch Guards provides vigilant monitoring and immediate responses to signs of potential fire hazards in commercial spaces.

Green Entrepreneur®

How Global Business Leaders Can Build a Sustainable Supply Chain

Businesses can build sustainable supply chains by leveraging technology to reduce environmental impact, optimize resources and track emissions while balancing operational efficiency and sustainability goals.